Section 8

Public Adjuster

- A person hired for a fee on behalf of an insured or third-party claimant to negotiate and settle a claim

Which of the following forms does not require approval from the Office of Insurance Regulation?

Agent report

A person acting as an insurer without a Certificate of Authority and collects $150,000 in premiums is guilty of which of the following?

1st degree felony

Fraudulent conduct in committing twisting or churning

1st degree misdemeanor (imprisonment for a year

Willfully submit fraudulent signatures -

3rd degree felony (imprisonment up to 5 years)

An agent may have no more than ________ of his total business within a 12-month period be from controlled business.

50%

All-lines Adjuster

A person who is self-employed or employed by an insurer or an independent adjusting firm and determines the amount of a claim and settles the claim.

Choose the statement that is true about the payment of claims.

A property insurer must transmit claims payments directly to the primary policyholder

A proof of loss must be provided to the insurer within _____ days of a homeowner loss.

. 90

A notice explaining the reason for the denial of insurance coverage applies in which of the following?

. All notices of denials require a reason

Choose the true statement about the state insurance fraud department.

. If a criminal law has been violated, the office will refer it to the appropriate law enforcement agency

Which state entity is responsible for approving a Certificate of Authority for an insurance company?

. Office of Insurance Regulation

Life and Health Section

Conduct exams and investigate business practices of authorized life and health insurers

Which type of adjuster is hired on behalf of a third-party claimant to negotiate and settle a claim?

Public adjuster

Property and Casualty Section

- Conduct exams and investigate business practices of authorized property and casualty insurers

Willful violation of the Insurance Code

Misdemeanor of the 2nd degree (imprisonment up to 60 days)

Failure to answer a subpoena or order

$1000 fine

Violation of cease and desist order

$50,000 Fine

Non-willful violation -

$5000 fine

Willful violation

$75,000 fine

Willful violation

$75,000 fine per violation

2nd degree felony, up to 15 years imprisonment

, if the total premiums collected are between $20,000 and $100,000

□ Non-willful violation

- $5,000 fine per violation

Market Analysis Section

- Identifies trends and analyzes patterns of insurer's data related to industry or marketplace issues

Investigations

- Special Investigation Unit - investigates allegations of unauthorized and illegal insurance activity and in-depth investigations of authorized insurers

The Florida Insurance Guaranty Association will assume the contractual obligations of an insolvent insurer up to _________ for any one policy.

. $300,000

Rebating

An agent may not offer or extend anything of value to a client that is not already a part of the contract, as an incentive to purchase insurance

An agent willfully violated a requirement in the Insurance Code and his penalty was which of the following?

An agent willfully violated a requirement in the Insurance Code and his penalty was which of the following?

The Market Investigation division includes 4 sections with unique duties. Which of the following is not one of those 4 sections?

Approval

Nonpayment of Premium

At least 10 days' written notice of cancellation must be given for nonpayment of premium.

The administration of state insurance law is the responsibility of which of the following?

Chief financial Officer

churning

Churning is the practice whereby policy values (such as cash value) in an existing life insurance policy, annuity contract, and/or any riders, are used to purchase another insurance policy or annuity contract with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation.

Which of the following is not a duty of the Department of Financial Services?

Enforces the Insurance Code by administering criminal penalties

Recordkeeping

Every agent transacting any insurance policy must maintain in his/her office, or have readily accessible by electronic or photographic means, for a period of at least 5 years after policy expiration, records of policies he/she transacted

The Department of Financial Services can impose which of the following penalties?

Fine for violation of a cease and desist order up to $50,000

Twisting

Knowingly making any misleading representations or incomplete or fraudulent comparisons or material omissions with respect to any insurance policy for the purpose of inducing a person to lapse a policy.

Which of the following is not a qualification to apply for an insurance license in Florida?

Must have a highschool diploma or GED

Certificate of Authority -

No person can act as an insurer and no insurer or its agents, attorneys, subscribers, or representatives can directly or indirectly transact insurance in Florida unless authorized by a Certificate of Authority, issued to the insurer by the Office of Insurance Regulation

Which state entity decides conflicts between insurance companies and policyholders?

State judicial system

, an insurer may then cancel or nonrenew a policy prior to the repair of the dwelling/ residential property:

Upon 10 days' notice for nonpayment of premium

New agents licensed within the past 5

The total amount of CE required is 24 hours every 2 years

Agents doing business with non admitted carriers are subjected to?

a 3rd degree felony (5 years impriosonment)

Prior approval

exists when insurers are not allowed to implement a rate or rate change until it has been approved by the insurance department. Florida requires the insurer submit the filing 30 days prior to use.

1st degree felony, a term not exceeding 30 years,

if the total premiums collected are exceeding over $100,000

Agency change of residesidence

must be reported within 30 days

If the insurer elects to nonrenew a policy covering a property that has been damaged

the insurer must provide at least 90 days' notice to the insured that the insurer intends to nonrenew the policy 90 days after the dwelling or residential property has been repaired.

Unauthorized Insurers Process Law

the purpose of the Unauthorized Insurers Process Law is to subject certain insurers, their representatives or those aiding such insurers to the jurisdiction of Florida courts in lawsuits by or on behalf of insureds or beneficiaries under insurance contracts.